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YOUR COMPANY IS LOOKING FOR ASSET BASED LENDING ABL FINANCE! 

You've arrived at the right address! Welcome to 7 Park Avenue Financial 

        Financing & Cash flow are the biggest issues facing businesses today

                              ARE YOU UNAWARE OR   DISSATISFIED WITH YOUR CURRENT BUSINESS FINANCING OPTIONS?

CONTACT

CALL NOW - DIRECT LINE - 416 319 5769 - Let's talk or arrange a meeting to discuss your needs

EMAIL - sprokop@7parkavenuefinancial.com

"Accessing capital isn't about having nothing; it's about optimizing what you already have. Asset-based lending turns balance sheets into bankable opportunities."

7 Park Avenue Financial originates business financing solutions for Canadian Businesses – We offer ABL Loan Finance and working capital solutions  – Save time, and focus on profits and business opportunities

7 Park Avenue Financial: “Canadian Business Financing with the intelligent use of experience”

The Working Capital Revolution: ABL Financing for Canadian Business Growth

Asset-based business finance solutions for your business are a solid 'self-help' strategy that delivers on loans & business credit alternatives made to run and grow your company.

‘Self-help' seems more popular than ever ... so let's dig in!

Companies face many challenges, and financing is undoubtedly one of them.

Let's not forget, though, that those challenges might have a positive spin—sales growth opportunities, growth financing funding, and competitor acquisition—yet they can also be daunting regarding threats to your very existence in today’s competitive environment.

How, then, can asset-based finance for specific assets aid your firm in allowing you to generate the working capital and the cash flows you need to prosper and grow, let alone survive?

Trapped Assets, Untapped Potential

Your business has valuable assets on the balance sheet, yet you struggle with cash flow constraints that limit growth opportunities. This frustrating disconnect prevents expansion, inventory purchases, and even meeting operational expenses.

Let the 7 Park Avenue Financial team show you how ABL loan finance transforms these dormant assets into accessible working capital, unlocking their potential without surrendering ownership or control.

Two Uncommon Takes on ABL Loan Finance

1. While most businesses view ABL loans as emergency funding, strategic companies use them preventatively to create liquidity reserves before seasonal downturns, insulating operations from market volatility with funding better than traditional operating facility advances - a key business benefit
2. ABL financing can strengthen supplier relationships by enabling faster payments, potentially qualifying your business for early payment discounts that offset financing costs.

KEY BENEFITS OF ASSET BASED LENDING SOLUTIONS FOR MORE ACCESS TO CAPITAL

- Better liquidity

- Often provides faster approval versus unsecured loans from banks, traditional lenders

- Finance solutions are often customized  and provide greater flexibility to your business and cash flow repayment ability

- ABL lending is often called ' covenant light' and does not rely on the same heavy emphasis banks place on ratios, covenants, personal guarantees, outside collateral, etc

- Asset-based bridge loans are often a road back to more traditional lending at lower rates and provide higher fixed asset facility limits in an ABL solution

- Competitive pricing and costs based on asset quality, overall financial strength

WHEN SHOULD YOU CONSIDER ASSET-BASED FINANCE  

Asset-based finance helps your firm in both good times and challenging times. 

It comes in a variety of forms—it is commonly referred to as 'ABL' financing. Typically, your firm would negotiate what is simply or commonly known as an asset-based line of credit. The facility provides a revolving line of credit like a chartered bank facility.

Non-bank operating credit lines might also include a significant inventory financing component and usually address what we could best call special needs or special situations re turnarounds, growth, distress, etc.

UNDERSTANDING THE COST OF ASSET BASED FUNDING SOLUTIONS

Although interest rates and finance costs are higher ( not always, but often ), asset finance solutions deliver!

Pricing in Canada on asset-based lines of credit is all over the map. We tell clients they can expect to pay anywhere from a point or two over prime up to .75-1.25% per month.

What defines that huge difference in pricing? The answer is that there are different, what we will call 'tiers' in ABL lending in Canada, and your firm's overall size and deal quality will ultimately drive you to an asset-based finance partner that more closely matches your needs and your overall 'risk profile.'

A perfect match? The best candidate for an asset-based finance line of credit is a firm experiencing strong growth but can't attract the traditional capital used to finance receivables, inventory, plant and equipment, and even, in some cases, real estate.

FINANCING THE  BALANCE SHEET! THERE ARE DIFFERENT  TYPES OF ASSET-BASED FINANCING 

Creativity is the benchmark for asset-based financing. Your balance sheet can be financed 'to the max' based on your different asset components.  In some cases, even intellectual property or patents might be included in the overall financing, although that is not the norm.

The reality is that ABL finance has somewhat changed the overall face of business financing in Canada, and more and more firms, both large and small, are gravitating to this form of finance.

Deal sizes in Canada vary greatly. We do not encourage clients who need under 250k/month to explore asset-based finance because, at a certain point, the reporting, costs, etc., do not make sense for either your firm or the ABL lender.

A business plan might not be required, but key information, such as a cash flow forecast, will help ensure success.

HAVE YOU CONSIDERED THESE ASSET FINANCING SOLUTIONS?

Other general asset-based financing solutions include:

A/R financing

Inventory Loans

SR&ED Tax Credit Loans

Sale leasebacks on hard assets such as company-owned equipment/ commercial real estate

Ask our clients if there is any downside to asset-based lending and an ABL working capital facility. A broad range of income-generating physical assets can be financed.  

With relative certainty, we can say the upside significantly offsets any downside. The facility gives you almost unlimited working capital and margin assets that might otherwise not be financeable.

And don’t forget, this type of facility does not add debt to your balance sheet, you are simply monetizing your hard and in some cases soft assets.

Case Study: ABL Loan Finance Success Story

When a Northern Ontario mfr. faced a critical expansion opportunity requiring $2.5 million in working capital, traditional banks focused on their recent quarterly loss despite $5.8 million in valuable inventory and equipment.

An ABL loan finance solution transformed their balance sheet assets into immediate working capital by providing a $3.2 million revolving credit facility based on their receivables, inventory, and equipment.

Asset based lending works!

This allowed them to:

• Fulfill a major new contract, increasing annual revenue by 47%

• Improve supplier terms by paying invoices early

• Hire 12 additional skilled employees

• Invest in productivity-enhancing equipment

KEY  TAKEAWAYS

• Asset Valuation Fundamentals drive ABL financing with lenders typically advancing 70-90% against accounts receivable, 50-70% against inventory, and 50-80% against equipment depending on liquidity and condition.

• Borrowing Base Calculations determine your available credit by multiplying eligible assets by their advance rate, creating a revolving facility with payments that fluctuate with your business cycle rather than fixed payments.

• Collateral Monitoring Systems require regular reporting on asset status, including aging reports for receivables and inventory turnover metrics that directly impact available funding amounts.

• Cost Structure Differences separate ABL from traditional loans. Monitoring fees and higher interest rates are offset by greater flexibility and availability during growth periods when conventional financing becomes restricted.

• Financial Covenant Advantages make ABL attractive during volatile periods. These loans focus primarily on collateral value rather than imposing strict debt-to-EBITDA or fixed charge coverage restrictions common with traditional financing.

CONCLUSION 

Call  7 Park Avenue Financial, a trusted, credible, and experienced advisor in asset-based lending in Canada and asset-based loans your business can benefit from regarding financing your company's assets and sales to help with growth opportunities via understanding asset based lending potential.

FAQ: FREQUENTLY ASKED QUESTIONS/PEOPLE ALSO ASK/ MORE INFORMATION  

What is asset-based finance?

Asset-based financing solutions provide businesses with valuable cash flow and working capital by funding or monetizing accounts receivables, inventories, fixed assets, and real estate. Financing is based on market and liquidation instead of the assets' face value or book value.

Transactions are structured as either business lines of credit or term loans. The interest rate on an asset-backed loan is often higher than that of traditional financing but competitive based on overall credit and asset quality. Asset-based finance companies focus on business lending, as asset-based financing for individuals is unavailable.

This method of financing covers a large asset class, including firms with contractual cash flows. Asset-based lenders are typically not as regulated as banks are, and their funding comes from the capital markets.

What is the meaning of asset finance?